Grouping models are widely used in economics but are subject to finite sample bias. I show that the standard errors-in-variables estimator (EVE) is exactly equivalent to the Jackknife Instrumental Variables Estimator (JIVE), ...

We extend the Bikhchandani, Hirshleifer and Welch (1992) informational cascade framework to allow for asymmetric signal accuracy. Simulations demonstrate that even
small departures from symmetry may lead to non-monotonic ...

This paper offers a theoretical explanation for the determination of exchange rates under specific conditions which can/could be found in some OECD and newly industrialised countries. In an Obstfeld (1994) framework extended ...

We calculate the NAIRU for the U.S. in a framework where inflation and the unemployment rate can respond to each other. The NAIRU is defined as the component of the actual unemployment rate that is uncorrelated with inflation ...

In an observational learning environment rational agents may mimic the actions of the predecessors even when their own signal suggests the opposite. In case early movers’ signals happen to be incorrect society may settle ...

There is a well-established debate between Heckman sample selection and two-part models in health econometrics, particularly when no obvious exclusion restrictions are available. Most of this debate has focussed on the ...

The near elderly are a vulnerable segment of the population with high-expected medical expenses. Individuals who retire before Medicare eligibility may lose employer provided health insurance, and may face a potentially ...

This paper proposes a new method of measuring obesity using Body Mass Index (BMI) data. Conventional measures which simply count the number of individuals with BMI in excess of an upper limit ignore the extent by which ...

In synthetic cohort models (cross-sectional data grouped at the cohort and year level), researchers often ignore potential biases induced by sampling error because they have 100 or 200 observations per group. I investigate ...